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Virden’s Assessment Up By A Million Dollars

Virden Financial Plan Hearing
Virden

With a higher assessment, up about one million dollars, Town of Virden residents will pay slightly more taxes in 2017. Thirty-five percent of the Town’s budget goes to education, so residents also feel the consequences of a Fort La Bosse School Division budget increase.

However, the Town has scheduled many capital expenditures, improvements, and the actual dollar increase for ratepayers is not huge.

Town of Virden Chief Administrative Officer Rhonda Stewart explained that based upon an average Virden home assessed at $273,000 a home owner would see their taxes rise by $37, which includes the total tax bill – school taxes as well. The figure is derived from the mill rate, based on the taxable portion of the property - 45% of the property’s assessment, or $123,000. For comparison, taxes on a highly assessed house rose by $108 this year.

CAO Stewart presented the Financial Plan at a Public Hearing on May 9, with media and all of Council attending.

Following the presentation, Councillors voted to approve first and second reading. Council also approved Local Improvement Borrowing By-Law No. 2755 and Water Treatment By-Law No. 2756.

These borrowing by-laws must meet with Provincial approval before Virden Council can give the 2017 budget Third Reading, which is expected to take place at the first June council meeting.

Budget summary

School taxes went from 7.77 mills to 7.90 mills this year. The provincial levy mill rate remained unchanged but, due to the rise in assessment value in the Town of Virden from $191 million to $192 million, more taxes will be collected.

CAO Stewart explained, “Our two LIDs (Local Improvement District) borrowing for what I call the original town, went from 1.255 mills to 1.465 mills because we have added a couple of borrowing by-laws.”

The general municipal mill rate went down slightly from 17.53 mills to 17.493. The General tax levy is $5,761,209; from that amount, education taxation accounts for $2,008,677 leaving the net municipal taxes (and grants in lieu of taxes) at $3,752,532.

In rounded figures, other revenue was over $2.2million. Transfers from accumulated surplus and reserves was nearly $3.211million, with a total of Municipal Revenue of $9,179,709.

Allowing a $10 thousand cushion for cancellations on the tax roll and similar costs, the 2017 income and expenditures are a balanced budget.

The Town has budgeted to spend nearly $2.282 million on fiscal services; transportation is next at nearly $1.544 million; the recreation and culture budget is just under $1.470 million; and environmental health is just over $1.130 million. Protective services budget is just shy of a million dollars and general government services are nearly $914,200.

The Town expects to spend $7.402 million on capital purchases and upgrades, a sum which includes the Sewage Treatment Plant Phase II for $4 million, to be borne by borrowing and sewer, water and paving at $375,000, also borne by borrowing.

Reserves are budgeted to pay for $1.125 million of the capital budget; general funds $1.052 million and a utility fund will take care of $850,000.

Other improvements

Transfers from surpluses, income from the soils facility (particularly for recreation centre loan payment) and the provincial Gas Tax account are important sources for the budget.

Transfers account for 35% of the Town’s 2017 budgeted revenue, consisting of a transfer from accumulated surplus of $1,194,400 representing the use of taxes levied or amounts transferred in 2016 for project that were not carried out or completed that year, but are planned for this year.

An additional amount of nearly $900,000 has been transferred from accumulated surplus to be allocated to: development of Anson Street and installation of hydro at the Industrial Park for nearly $150,000; GIS and GPS equipment $14,000; drainage and site improvements at the Industrial Park and Airport area of $20,000; property development and legal subdivision work $15,000; land purchase of $300,000; purchase of a sander for $10,000; installation of three monitors in the arena for $3,000; a further transfer of Soils Facility Income for completion of signage, heat replacement system for the pool etc. at Tundra Oil & Gas Place for $50,000, and the recreation facility debenture payment of $333,330.

An additional $495,700 has been transferred from Soils Facility Income for capital projects at the Virden Municipal Industrial and Waste Treatment Facility.

Regarding the utility budget, the Town is budgeting a large transfer of capital; $1.2 million is for the lift station, with hopes of receiving $600,000 from the Water Services Board and a further $600,000 of Gas Tax funds.

With $1,150,000 at the end of 2016 in the Gas Tax account, Stewart said, “Hopefully, we will not be depleting that account, but will use it for another similar project, going forward.”

The impact on LID No.1 Municipal mill rate meant a rise to 18.958 from 18.758 mills in 2016. Property that came into the town in 1999 is taxed at 21.098 mills in 2017, up slightly from 20.93 mills in 2016.

Budget documents are available to ratepayers at the Town Office.

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